A quick-service hamburger chain that runs and franchises thousands of restaurants worldwide, known for its made-to-order square burgers made from fresh beef, the Frosty dessert, and a breakfast menu. Founder Dave Thomas opened the first Wendy's in Columbus, Ohio, in 1969 and named it after his daughter Melinda, whose childhood nickname was Wendy. The square patties famously "don't cut corners" — the corners poke out from the round bun so customers can see the fresh beef.
U.S. same-restaurant sales fell 7.0% in Q2 2026, the second-steepest quarterly drop in the series, as traffic declines continued.
U.S. same-restaurant sales fell 7.0%, extending a five-quarter streak of deepening declines. rose 1.7% to $570.6 million, but fell 40.8% to $32.6 million as company-operated restaurant margin contracted 200 to 13.6% and franchise royalty revenue dropped $8.5 million. The company cut its quarterly in half to $0.07 per share.
Key takeaways
Global same-restaurant sales fell 7.0% in the U.S., driven by lower customer traffic that was only partially offset by higher average check; international same-restaurant sales rose 1.8%.
Company-operated restaurant margin contracted 200 to 13.6%, pressured by higher commodity and labor costs and lower traffic, partially offset by higher average check and labor efficiencies.
Franchise royalty , the primary earnings driver in the 94%-franchised system, fell $8.5 million to $123.6 million, reflecting a 6.4% decline in global franchise same-restaurant sales.
Section summaries
Management's Discussion and Analysis
Wendy's Q2 2026 income fell 36% as U.S. same-restaurant sales dropped 7.0% on lower traffic, partially offset by higher average check.
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Global declined 6.5% on a basis to $3.42 billion, driven by a 7.0% drop in U.S. due to lower traffic.
Company-operated restaurant margin contracted 200 to 13.6%, pressured by higher commodity and labor costs and lower traffic, partially offset by higher average check and labor efficiencies.
Advertising funds rose $16.0 million to $127.4 million, primarily from reallocating local funds to national advertising and a non-recurring vendor incentive.
The company reduced its quarterly to $0.07 per share from $0.14, and had $35.0 million remaining under its authorization.
rose 66.0% to $100.6 million, aided by lower income tax payments, while cash and equivalents stood at $341.2 million with no outstanding borrowings on the .
What changed
The U.S. same-restaurant sales decline deepened to 7.0% in Q2 2026 from 7.8% in Q1 2026, a modest sequential improvement but still the second-steepest drop in the series, confirming the traffic problem has not yet found a floor.
Company-operated restaurant margin recovered to 13.6% from the Q1 2026 low of 10.8%, but remains 200 below the 15.6% reported in Q2 2025, showing cost pressures persist even as the quarter-over-quarter comparison improves.
The cut to $0.07 per share addresses a concern flagged in prior quarters about how the company would fund capital returns with at $115.6 million and declining.
The $16.0 million increase in advertising funds , driven by a reallocation of local funds and a non-recurring vendor incentive, partially offset the $8.5 million decline in franchise royalty revenue, masking the underlying weakness in franchise sales.
What to watch
Whether U.S. same-restaurant sales find a floor in Q3 2026 after five consecutive quarters of decline, or whether the 7.0% Q2 drop signals further erosion as the company laps the 4.7% decline from Q3 2025.
The trajectory of company-operated restaurant margin from the 13.6% Q2 level, and whether the recovery from the 10.8% Q1 low can be sustained as commodity and labor cost inflation persists.
The execution and early impact of Project Fresh restaurant closures on systemwide sales, franchisee health, and the $774.1 million balance.
How the company funds its reduced $0.07 per share quarterly and $100-110 million in planned with at $120.5 million and only $35.0 million remaining under the authorization.
Franchise royalty fell $8.5 million to $123.6 million, reflecting a 6.4% decline in global franchise .
Advertising funds rose $16.0 million to $127.4 million, primarily from reallocating local funds to national advertising and a non-recurring vendor incentive.
increased to $160.0 million, aided by lower income tax payments, while the company maintained $394.8 million in cash and equivalents with no outstanding borrowings on its .
The company reduced its quarterly to $0.07 per share and had $35.0 million remaining under its authorization.
Quantitative and Qualitative Disclosures About Market Risk
As of June 28, 2026 there were no material changes from the information contained in the Company’s Form 10-K for the fiscal year ended December 28, 2025.
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As of June 28, 2026 there were no material changes from the information contained in the Company’s Form 10-K for the fiscal year ended December 28, 2025.